Crestwood Equity Partners LP doubled its position in the Powder River Basin after buying out its joint venture (JV) partner’s half in the Jackalope gas gathering system on April 11.
The Williams Cos. Inc. agreed to sell its 50% interest and turn over operatorship in the Jackalope system to a subsidiary of Houston-based Crestwood for roughly $485 million. Crestwood said it funded the acquisition through a $235 million issuance of preferred equity and borrowing under its revolver.
The Jackalope assets are comprised of the Jackalope Gas Gathering System and Bucking Horse Processing Plant located in Converse County, Wyo. The system is supported by a 358,000 acreage dedication by Chesapeake Energy Corp. and a 30,000 acreage dedication by Panther Energy.